United Therapeutics Corporation, a biotechnology company, develops and commercializes products to address the unmet medical needs of patients with chronic and life-threatening diseases worldwide. The company’s principal therapeutic products and product candidates include Remodulin, an injection used for the treatment of pulmonary arterial hypertension (PAH); Tyvaso, an inhaled prostacyclin therapy for PAH; Adcirca, a once-daily oral therapy for PAH; Orenitram, a prostacyclin analog for PAH; Unituxin, an antibody that binds to cancerous tumors and destroys the cancer cells; and engineered lungs and lung tissue that can be transplanted into patients suffering from PAH and other lung diseases.
Take a look at the 1-year chart of United (NASDAQ: UTHR) below with added notations:
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The Tale of the Tape: UTHR broke out of a rectangle pattern. A possible long position on the stock would be on a pullback to $137. The ideal short opportunity would be on a break back below the $137 level.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach